BP profits hit 18-year high as NatWest the latest bank to make billions

Profits at the UK-based oil and gas giant BP have hit an 18-year high, surpassing the level seen during the 2022 energy crisis.

In the three months to September, BP's profits quadrupled to $8.46bn (£6.25bn).

That's up from $2.2bn (£1.6bn) a year earlier and higher than during the 2022 energy crisis after Russia's Ukraine invasion.

Not since 2008 have quarterly profits been so high.

BP said the "strong" results were driven by higher oil and gas prices, higher margins, and "good progress" in performance improvement across the business.

Fossil fuel prices have soared since Iran effectively shut the Strait of Hormuz shipping route, creating supply bottlenecks and damaging production infrastructure.

Oil and gas producers in the UK are still subject to the 78% effective windfall tax rate introduced in 2022 by Rishi Sunak.

Earlier this year, BP put its North Sea oil and gas business up for sale as it moves "at speed" to simplify the business.

The company explores for oil and gas despite the International Energy Agency (IEA) saying no new fossil fuel project is compatible with the globally accepted goal of limiting warming to 1.5C.

Banks doing well too

High street bank NatWest also announced what it said was a "strong financial performance" on Friday, which showed operating profit before tax of £2.2bn, a slight 2.6% increase from a year earlier.

It made around £3.6bn by paying out less interest, on things like savings accounts, than it took in from loans and mortgages, representing a near 9% increase on the year before.

It's the latest in a string of banks which reported billions in profits as interest rates rose in a week when higher bank taxes have been announced.

Mortgage rates have risen as inflation increased due to more expensive fossil fuels caused by the US and Israel's war in Iran.

NatWest said on Friday it assumed the Bank of England base rate will rise to 4% next month.

In recognition of this fact, Chancellor John Healey announced a temporary increase in the bank surcharge from 3% to 6% in addition to 25% corporation tax.

The measure is expected to raise close to £1.5bn from the banking industry, according to Treasury documents published alongside the budget.

(c) Sky News 2026: BP profits hit 18-year high as NatWest the latest bank to make billions